The Anchoring Effect and Consumer Behavior in Brazilian E-Commerce: A Focus on Price Comparisons

Abstract

This paper explores the anchoring effect and its influence on consumer behavior within the context of Brazilian e-commerce, with a particular focus on how price comparisons impact consumer purchasing decisions. The anchoring effect, a cognitive bias where initial price information shapes subsequent judgments, is a key psychological mechanism driving consumers’ perceptions of value. In Brazil, where price sensitivity is pronounced, e-commerce platforms frequently use price anchoring strategies, such as displaying original prices alongside discounts, to make products seem like bargains. The study examines how demographic factors (age, income, education) and cultural influences (economic volatility, social norms) affect consumers’ susceptibility to price anchoring. Additionally, the research highlights how Brazilian consumers respond to dynamic pricing and price comparison tools, which are widely used in the country. The paper concludes with a discussion on the practical applications of price anchoring strategies for e-commerce platforms and suggests areas for further research, including cross-cultural comparisons and the ethical implications of anchoring in online retail.